P, Q and R are partners. On 31st July, 2022, R died and his share of profit till the date of death is to be calculated on the basis of turnover. The turnover for the year 2021-22 was ₹6,00,000 and profit ratio is 10%. During the year 2022-23, there is an expectation of 20% increase in turnover. Calculate R's share of profit till date of death.
Answer & explanation
Correct answer: option 1
The correct answer is option (1)- ₹8,000.
Sales for the year 2021- 22 = ₹6,00,000
Increase in sales = 20%
Sales for the year 2022-23 = 6,00,000 x 120/100
= ₹7,20,000
Profit percentage = 10%
Profit for the year 2022-23 = 7,20,000 x 10/100
= ₹72,000
Profit upto 31st July 2022 = 72,000 x 4/12
= ₹24,000
As no profit sharing ratio is mentioned which means profit is shared equally between partners.
R's share in profit = 24,000 x 1/3
= ₹8,000
So, R's share of profit till date of death is ₹8,000.